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martincfl
New Member

I had stock in a company thaT WENT BANKRUPT. How do I enter the loss on my tax form

 
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DawnC
Expert Alumni

I had stock in a company thaT WENT BANKRUPT. How do I enter the loss on my tax form

You can deduct worthless stock in the tax year it becomes completely worthless.  This normally happens when the corporation files for bankruptcy, stops doing business, and has no assets.  Financial difficulties won't make a company's stock worthless unless there's no hope that the company will pull through.

 

Enter a worthless stock like any stock sale but with a sales price of zero and the word worthless in its description.  Enter the correct cost or basis, date acquired, and December 31, 2024 as the date sold.

 

To enter your worthless stock  information follow these steps:

 

  1. Open (continue) your return in TurboTax.
  2. In the search box, search for investment sales then select the Jump to link in the search results.
  3. Answer Yes to the question Did you sell any of these investments in 2024?
    • If you land on the investment sales summary screen , select Add More Sales/Investments.
  4. Select Other then Continue.
  5. On the next screen, select Stock/1099-B and Continue.
  6. Continue following the onscreen instructions to enter the sale.

From Where do I enter investment sales?  

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